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EU Proposals for modernised trade agreement with Mexico now available online

The Commission today published - as part of its commitment for a more transparent trade and investment policy - six initial European proposals for modernising various elements of the EU-Mexico agreement. Together with the proposals the Commission makes available the report from the second round of talks that took place in Mexico between 22 and 25 November.

EU Trade Commissioner Cecilia Malmström said: "Sixteen years have passed since the current EU-Mexico became effective. Today we need to adapt it to a new trade reality. We've had some good initial talks with our Mexican counterparts but to reach a good agreement we also need constructive engagement from interested parties, including civil society. The proposals published today, in line with our transparency commitments, will contribute to that discussion."

These texts presented by the EU in the negotiations aim amongst other to:

Increase participation of European companies in Mexican public tenders, and vice versa

Broader protection of intellectual property, including names of traditional European products known as 'geographical indications'

Define more flexible rules of origin, i.e. criteria what products can benefit from lower customs tariffs

Ensure that small and medium enterprises can access the opportunities offered by the agreement.

These texts represent the EU's initial negotiating position on how to make the current agreement broader and more far-reaching. The proposals seek to reduce unnecessary regulatory barriers to trade and increase the part of trade benefits that go to small companies. At the same time, their aim is to uphold levels of consumer, worker and environment protection and work together with Mexico towards sustainable development.

As part of these transparency efforts, Commissioner Malmström has also asked EU Member States in the Council to make the negotiating mandate publicly available.

Further EU proposals will be made available as the negotiations progress.

Background

The EU-Mexico negotiations for a modernised Global Agreement, covering trade, started in end of May 2016.

The EU is today Mexico’s third trading partner after the US and China. Since the existing EU-Mexico agreement entered into force in 2000, the EU-Mexico trade in goods has increased by 180% and amounted to €53 billion in 2015.

Over the same period, the average annual investment flows originating in the EU have tripled. The EU is the second source of Mexico's foreign direct investment with an investment stock of $156 billion accumulated since the current agreement came into force.